Okay, so I'm gonna start a budgeting project, that will hopefully work for the rest of my life. It's Dave Ramsey's envelope budget. What is it, you ask? Well I'll tell you four easy "steps."
One: Budget each paycheck. You must budget down to the last dime if you're going to successfully implement the envelope system.
Two: Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing, and entertainment.
Three: Fill 'er up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
Four: When it's gone, it's gone! once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
Dave Ramsey says to give it time. It's not gonna work wonders right off the bat. So I'm gonna be patient and see how it works. I need it!
My categories are: car repair, cell phone, clothing, entertainment, gas, restaurant, and savings!
I'll upload pictures of the envelope system in progress later!
XOXO,
Christa Diane
One: Budget each paycheck. You must budget down to the last dime if you're going to successfully implement the envelope system.
Two: Divide and conquer. Of course, there will be budget items that you cannot include in your envelope system, like bills paid by check or automatic withdraw. However, you can create categories like food, gas, clothing, and entertainment.
Three: Fill 'er up. After you've categorized your cash expenses, fill each envelope with the money allotted for it in your budget. For example, if you allow $100 for clothing, put $100 in cash in your clothing envelope for the month.
Four: When it's gone, it's gone! once you've spent all the money in a given envelope, you're done spending for that category. If you go on a shopping spree and spend the $100 in your clothing envelope, you can't spend any more on clothes until you budget for that category again. That means no visits to the ATM to withdraw more money!
Dave Ramsey says to give it time. It's not gonna work wonders right off the bat. So I'm gonna be patient and see how it works. I need it!
My categories are: car repair, cell phone, clothing, entertainment, gas, restaurant, and savings!
I'll upload pictures of the envelope system in progress later!
XOXO,
Christa Diane
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